1. Pam, Greg and Linda plan to liquidate their partnership. They have always shared gains and losses in a 1:4:5 ratio and on the day of the liquidation, their balance sheet appeared as follows:

AssetsLiabilities and Equity

Cash27,500Accounts payable52,150

Other assets180,000Pam, Capital30,500

Greg, Capital80,350

Linda, Capital45,000

Total Assets208,000Total Liabilities and Equity208,000

Required: Compute for the amount that each partner will receive on the final cash distribution under the following unrelated assumptions:

I. The other assets are sold for 195,250

II. The other assets are sold for 150,000

III. The other assets are sold for 85,000 and any partners resulting deficits can and do pay in the amount of their deficits

IV. The other assets are sold for 75,000 and the partners have no assets other than those invested in the business

2. On December 31, 2020, the balance sheet of Joy, Emmy and Art Partnership is as follows:

Assets Liabilities and Equity

Cash 12,000Accounts payable40,000

Noncash assets212,000Joy, Loan 8,000

Loan to Art 8,000Emmy, Loan16,000

Joy, Capital30,400

Emmy, Capital57,600

Art, Capital80,000

Total232,000Total232,000

Profit and losses were shared as follows: Joy - 30%, Emmy - 30% and Art - 40%. It was decided to liquidate the business. The following is a summary of the realization and liquidation activities:

Book value ofCash ExpensesLiabilities Cash paid

asset realizedcollected paidto Partners

First Period104,00064,0003,20040,00032,800

Second Period60,00040,0003,20032,000

Third Period 48,00024,0001,60027,200

Required: Compute for the amount of cash that each partner will receive under each period.